The Union government is all set to bring in model by-laws to govern around 63,000 Primary Agricultural Credit Society (PACS) across the country. The newly created Ministry of Cooperation is also formulating a national level policy for cooperatives that is likely to be finalised by the end of this year, a senior government official has said.
The formation of the Ministry of Cooperation was announced on July 5, 2021 and Home Minister Amit Shah was allocated the portfolio during the Cabinet expansion.
Many cash rich cooperatives in several States are controlled by Opposition parties such as the Nationalist Congress Party (NCP) and the Congress and they play a crucial role in political events in States such as Maharashtra, Kerala, Gujarat, parts of Karnataka, Tamil Nadu, Madhya Pradesh and West Bengal.
The official said on Friday that plan was afoot to expand the role of cooperatives to economic and social spheres also.
“India’s demography is changing. Eighty percent of the population in urban areas will be above 60 years of age, their needs are different and presently, they are catered by the private sector. Such services can be rendered by the cooperatives in future,” the official stated.
National conference
The ministry has planned a two-day National Conference on Cooperation Policy on April 12 and 13. It will be inaugurated by Mr. Shah.
More than two dozen Central Ministries represented by Secretaries and Joint Secretaries, all State governments and Union Territories represented by their Chief Secretaries, Additional Chief Secretaries, Principal Secretaries and Registrars of Cooperatives and heads of around 40 cooperative and other major national institutions will participate in the conference.
A statement by the Ministry said the conference would explore the “present legal framework, identification of regulatory policy, operational barriers and measures required for their removal, leading to Ease of Doing Business and providing a level playing field to cooperatives and other economic entities.”
The conference would discuss ways to promote new cooperatives and revitalise the defunct ones, cooperation among cooperatives, ways to increase membership and measures to address regional imbalance.
“We have received 54 suggestions from 20 State governments and other stakeholders, they will be incorporated in the new policy that is being framed,” the official said. The draft of the national database of cooperative societies was being finalised and the digitisation of PACS would be completed soon, he added.
